Income Tax dept busts big cash deposit racket in Nagaland

Income generated by Nagaland's local tribals is exempted from tax.

It was learnt that the racket was involved in hoarding big amount of unaccounted money, as under the law, income generated from Nagaland’s local tribals is exempted from tax.(Reuters)

The Income Tax department on Wednesday busted big cash deposit racket in Nagaland, CNBC TV 18 reported. It was learnt that the racket was involved in hoarding big amount of unaccounted money, as under the law, income generated by Nagaland’s local tribals is exempted from tax. On Tuesday, Rs 3.5 crore cash in old currency were seized from Nagaland’s Dimapur airport in old Rs.500 and Rs.1000 currency notes. However, the money, mysteriously vanished from airplane even after getting seized by the Central Industrial Security Forces (CISF).

The IT department, with the help of local security forces, is carrying out raids in the entire country wherever any inputs of malpractices are received. Earlier in the day, it was reported that a whopping Rs 21,000 crores have been deposited in Jan Dhan accounts since the implementation of Centre’s demonetisation drive. The report added that maximum amount of money has come from the states of Karnataka and West Bengal.

Meanwhile, India Today television reported that such accounts are under IT scanner. The government has already issued a warning to Jan Dhan account holders — 24 crore at the last count — to desist from being used to deposit illicit cash in their accounts. The banks have been asked to monitor such no-frill accounts that have seen around Rs 49,000 cash deposits after demonetisation kicked in. The maximum deposit limit in such accounts is R50,000.